PDA

View Full Version : CDO's and retirement funds


Tulpen
11-14-07, 10:50 AM
Homw many CDO's are in mom and pop retirement funds?
Some of those CDO' s were rated AAA and are now junk.

Apparently some banks were trying to unload CDO's to retirement funds.
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aW5vEJn3LpVw

Retirement funds obviously cannot hold junk rated products, so what are they doing now, selling out?

Some bank having to write of a few billion is a mere statistic but when mom and pops retirement fund has to write of serious amounts of money the reactions will be quite different.